Nobel Finance Sydney – Money Matters Newsfeed

From Money Magazine, March 2005

If you’re planning on a mortgage broker to find your perfect home loan, find out some information before you start. The Mortgage Industry Association of Australia (MIAA) gives these tips:

• Is the broker an MIAA Accredited Mortgage Consultant? This shows the broker has industry training, should abide by the association’s code of practice and is covered by the Mortgage Industry Ombudsman Scheme. Go to “Search for an MIAA Member” on the MIAA website.
• Which lenders do the brokers have on their books? Some brokers may be able to offer loan products from more than 15 different institutions, while others may only consider products from a couple. Make sure the broker deals with a spread of lender types (banks, mortgage managers and others).
• How does the broker get paid? Make sure that the broker does not let the size of their commission from the lender cloud their judgement.
• What fees does the broker charge? Ask the broker to clearly specify all their fees and charges. Some charge none while others may charge a one-off fee. Check what extra services you get for the fee you may pay.
• How do they compare loans and decide which is best for you? Make sure the broker clearly explains their methodology and criteria.
• Find out the loan comparison (or true) rate of the loans recommended to you.
• Ask if the broker is also a lender — you don’t want a mortgage broker recommending loans if they offer their own (unless you’re sure they don’t favour their own).
• Ask for proof of professional qualifications, information on the broker’s experience or references from other clients.
• Does the broker have professional indemnity insurance? This covers them if they’re sued for professional negligence or breach of duty.
• Ask to see what privacy guidelines the broker follows when handling your information.